05:24 PM EDT, 07/17/2024 (MT Newswires) -- Methanex ( MEOH ) edged up in after-hours Nasdaq trading after the company on Wednesday said it is partnering with Advantage Energy's ( AAVVF ) Entropy carbon-capture subsidiary on a Preliminary Front-End Engineering and Design study for carbon capture, utilization and sequestration at Methanex's ( MEOH ) Medicine Hat, Alberta, methanol plant.

Methanex ( MEOH ) said the project aims to capture 400 tonnes of carbon-dioxide per day emitted by the Medicine Hat facility, and will use a portion of the emission to increase methanol production at the site by 50,000 tonnes per year while sequestering the remainder in underground reservoirs.

Entropy will fund the majority of the $100-million cost of the project and will retain ownership of carbon-capture equipment at the facility, while Methanex ( MEOH ) "will supply the utilities, build the tie-ins to its facility and operate the capture equipment once commissioned".

"We're excited to advance this first-of-its-kind carbon capture solution in North America in collaboration with Entropy. This project exemplifies Methanex's ( MEOH ) commitment to reduce our global GHG emission intensity by 10% by 2030 and to advance at least one LCS project into Pre-FEED in 2024," Mark Allard, Senior Vice President, Low Carbon Solutions for Methanex ( MEOH ). said in a release.

Methanex ( MEOH ) shares were last seen up US$0.034 to US$52.13 after hours. They closed down $0.86 to $71.34 on the Toronto Stock Exchange. Advantage shares closed down $0.04 to $9.96 on the exchange.